Viva Energy sinks on ASX debut

Australia’s largest float since Medibank in 2014 has turned red in early trade, with Viva Energy slipping 2.8pc after its noon float.

A 100 million litre crude oil tank at Viva Energy’s Geelong Refinery.

Viva Energy shares have fallen after the firm debuted on the stockmarket, dealing investors an early loss in Australia’s largest float since Medibank in 2014.

After the petrol and diesel supplier (VEA) announced earlier this week it had raised $2.65 billion through the initial public offering, Viva hit the boards at $2.43, representing a 2.8 per cent loss on the $2.50 price investors paid for shares which was at the bottom end of its price range.

Swiss commodities giant Vitol has pledged to remain a long-term owner of the $4.9bn-valued Viva after deciding to retain a 45 per cent stake.

Vitol bought the business for $2.9bn from oil giant Shell in 2014, with Viva’s assets including the Geelong refinery, one of only four in Australia, and a network of more than 20 fuel import terminals through which it supplies a quarter of the nation’s refined fuel needs.

It supplies fuel to 50 airports around Australia and operates 1100 petrol stations throughout the country.